NEW YORK, June 3, 2016 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed on behalf of Target Corporation ("Target" or the "Company") (NYSE: TGT) and certain of its officers. The class action, filed in United States District Court, District of Minnesota, and docketed under 16-cv-01485, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired Target securities between February 27, 2013 and May 19, 2014 inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased Target securities during the Class Period, you have until July 18, 2016 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, ext. 9980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Target currently operates general merchandise discount stores throughout the U.S. The Company sells a wide variety of household essentials, music and movies, electronics, clothing, and other items, through its traditional stores, its website, and via direct shipment from vendors or third-parties.
On January 13, 2011, Target announced that it would expand its retail operations into Canada, with plans to open between 100 and 150 stores in the country during 2013 and 2014.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) at the time of the opening of Target's first group of stores in Canada, Target had significant problems with its supply chain infrastructure, distribution centers, and technology systems, as well as inadequately trained employees; (2) these problems caused significant, pervasive issues, including excess inventory at distribution centers and inadequate inventory at retail locations; (3) the excess inventory at distribution centers and lack of inventory at retail locations forced Target to heavily discount products and incur heavy losses; (4) the supply-chain and personnel problems were not typical of newly launched locations in Target's traditional U.S.-based market; and (5) as a result, Target's public statements were materially false and misleading at all relevant times.
On August 21, 2013, Target announced its results for the second quarter of 2013, including weak guidance for full-year earnings per share ("EPS") for 2013. Although Chief Executive Officer ("CEO") Defendant Gregg Steinhafel sought to reassure investors that the poor performance was of "the same kind" that Target saw "every time we open a new store here in the United States," Target's stock price declined by $2.45 per share, or 3.61 percent.
On November 21, 2013, Target released downbeat results for the third quarter of 2013, including news that the Company's Canadian segment had suffered a drop in operation margin from rates exceeding 30 percent in prior quarters to only 14.8 percent due to the need to aggressively discount merchandise. Although Chief Financial Officer ("CFO") John Mulligan attempted to assure investors that Target's personnel were working to "rationalize" the Company's "inventory overhang," Target's stock price declined by $2.30 per share, or 3.46 percent.
On May 5, 2014, Target announced that its Defendant Steinhafel, the architect of the Company's Canadian expansion, would leave the Company effective immediately, without any clear successor. Instead, the Company's CFO Mulligan was appointed interim CEO. On this news, Target's stock price fell $2.14 per share, or 3.45 percent.
On May 20, 2014, prior to the trading session, news reports circulated that Target had fired Tony Fisher, the Company's president of Canadian operations. The abrupt termination of Mr. Fisher revealed that the string of weak results from Target's Canadian operations were not simply growing pains associated with normal store openings, but rather due to significant operational issues and were partial disclosures of Defendants' fraudulent scheme to conceal the persistent and ultimately intractable problems with the expansion.
Eventually, on January 15, 2015, Target revealed the Company would discontinue its Canadian operations and that Target Canada Co. had filed for bankruptcy protection in Canada. In response to this news, Target stock declined $1.63 per share, or 2.1 percent.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and Los Angeles, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com
Robert S. Willoughby
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SOURCE Pomerantz LLP